Non-landed private home resale prices hit 7-month low

[reporter2]

http://www.straitstimes.com/archive/...h-low-20140610

Non-landed private home resale prices hit 7-month low

Published on Jun 10, 2014 1:25 AM

By Cheryl Ong


CHILL winds continued to blow over the private housing resale market, with prices slumping to a seven-month low last month.

Resale prices of non-landed private homes, such as condominium units, slipped 0.3 per cent last month compared with April, according to the Singapore Real Estate Exchange.

Prices in the private resale market have not been this weak since November. The price index stood then at 173.4, while last month's price index, compiled from data provided by the major property agencies here, stood at 173.

The number of homes exchanging hands also crashed, falling to 421 last month, 7.5 per cent lower compared with April.

Last month's number of transactions was also 42.6 per cent lower compared with the same period last year, highlighting a sharp decrease in demand.

Market watchers blamed the poor performance on property cooling measures and the launch of cheaper new properties.

Mr Eugene Lim, key executive officer of property firm ERA Realty, said buyers are feeling the tough loan limits.

"Buyers are limited by the amount of debt they can take and are likely to shy away from higher-priced properties," said Mr Lim. "They may have diverted their attention to hot new projects that were launched by developers at attractive prices."

He noted that City Developments' Commonwealth Towers, for instance, recorded brisk sales with "attractive prices". Prices start from $721,000 for a 441 sq ft one-bedder.

Homes in the city centre led the dip in last month's resale prices, falling 2.9 per cent from April.

Mr Ong Kah Seng, director of property consultancy R'ST Research, said asking prices in the luxury segment could have been hit as investors are aware of the competitive rental market and weak leasing demand.

Luxury units that remain unsold have made developers more willing to negotiate prices, so sellers cannot afford to compete with higher asking prices, added Mr Lim.

Prices of suburban resale homes fell 0.3 per cent, but those in city-fringe locations inched up 0.6 per cent.

There were more rental deals signed last month, rising 3.7 per cent from April to an estimated 3,120 units. This improved by 7.9 per cent from the 2,891 rental contracts signed in May last year. But rents of private non-landed homes dipped last month, slipping 0.8 per cent from April.

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[Arcachon]

In February 2010, the Government imposed a seller’s stamp duty (SSD) on sellers who buy (or acquire) residential properties on or after 20 February 2010 and sell (or disposed of) them within one year of acquisition.

The amount of SSD is computed based on the same rates as the buyer's stamp duty.

On 30 Aug 2010, the Government further announced that SSD will be payable on residential properties which are acquired (or purchased) on or after 30 Aug 2010 and disposed of (or sold) within 3 years of acquisition. The amount of SSD for the holding period of 1 year is computed based on the same rates as the buyer's stamp duty, but will be reduced to 2/3 and 1/3 of the amount of buyer's stamp duty for holding period of 2 years and 3 years respectively.

Holding period of 30 Aug 2011 : same rates as the buyer's stamp duty
Holding period of 30 Aug 2012 : 2/3 buyer's stamp duty
Holding period of 30 Aug 2013 : 1/3 buyer's stamp duty




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On 13 January 2011, the Government announced the extension of the holding period for imposition of SSD on residential properties from 3 years to 4 years based on new rates. The new SSD rates will be imposed on residential properties which are acquired (or purchased) on or after 14 January 2011 and disposed of (or sold) within 4 years of acquisition, as follows :

Holding period of 1 year : 16% of price or market value, whichever is higher
Holding period of 2 years : 12% of price or market value, whichever is higher
Holding period of 3 years : 8% of price or market value, whichever is higher
Holding period of 4 years : 4% of price or market value, whichever is higher
Properties acquired before 20 Feb 2010 will not be subject to SSD.

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Holding period till 14 January 2012: 16% of price or market value, whichever is higher
Holding period till 14 January 2013: 12% of price or market value, whichever is higher
Holding period till 14 January 2014: 8% of price or market value, whichever is higher
Holding period till 14 January 2015 : 4% of price or market value, whichever is higher

14 January 2016

[Arcachon]

http://www.iras.gov.sg/irashome/page.aspx?id=8996


Buyer's Stamp Duty (BSD)

Based on the purchase price or market value, whichever is higher

i) Before 22 February 2014


BSD Rates

Every $100 or part thereof of the first $180,000

$1.00

Every $100 or part thereof of the next $180,000

$2.00

Thereafter, every $100 or part thereof

$3.00



ii) On and After 22 February 2014


BSD Rates

First $180,000

1%

Next $180,000

2%

Remainder

3%



Illustrations

Assuming a property is purchased at $2,500,550 on 1 Mar 2014 which is reflective of market value


BSD

1% on the first $180,000

1% x $180,000
$ 1,800 .00

2% on the next $180,000

2% x $180,000

$ 3,600 .00

3% on the remainder

3% x $2,140,550

$64,216.50

Total



$69,616.50

BSD payable (rounded down to the nearest dollar)



$69,616.00

http://www.iras.gov.sg/irashome/page.aspx?id=8996#Buyer's Stamp Duty (BSD)